dewaldf.carstens
ArboristSite Member
We are a PTY Ltd. Company producing firewood (only blue gum, eucalyptus) near Cape Town South Africa. We started in 2017 January, with an investor, and we bought a Tajfun 480 processor, winch and log deck.
We get the trees for free, but we do give 5-10% of the split wood to the farmer as gesture. Plantations are 1/2 to 14ha. In total we have 4 million tons of trees we can potentially harvest. Our only cost, is cost to manufacture.
We have wholesale customers who we supply wet and dry wood to. Our existing order is 5000 ton per year at this stage, client is looking to expand if he can source more firewood. During the last 3 months we lost an additional 3000 tons in sales (new clients) because we did not have stock, could not supply, due to the fact that we are 1 tractor short, so we can only run processor when we are not winching trees.
The demand just for Cape Town is 500 ton of firewood per day. Population approximately 5 million.
We also supply bagged product to residential customers in 100km radius.
Potential market is mind blowing as there is huge firewood shortage. Monthly, 3000 tons are trucked in from as far as 1500km. At R1/kg firewood as fuelsource is 30% of the price of electricity or 40% compared to gas.
We started with no cash, so due to lower volumes, cash is strapped until we get second tractor.
Last Friday, our investor said he is pulling the plug? WTF? Mind blowing? After 6 months. Yes, he is crazy and suffer from severe depression due to his job.
This leaves us at ground zero, equipment wise as he is going to sell the equipment. We are left with a hell of a lot of free trees, and orders that we cant fill.
In RSA funding is non existent if you are white, everything is black empowerment. This leaves me with a dilemma; where to get funds to buy equipment again? If we do secure funds, I will not go for Tajfun, 2cord/hr machine, but rather upgrade to Rapido Loco 20 with larger capacity, or similar.
Exchange $1=13R or R15 to €1
We sell at R550-R800 per ton (excl delivery)
In Cape Town (90km from us) the same wood sell for R1400/ton excluding delivery.
Dry wood are very scarce if available at all.
Wood source is free.
Min wage R1500pp per month and we have 10 man crew (biggest expense) due to equipment shortage.
To me this makes very good economics?
We already have orders of approximately 13 000 tons, just for 2018, and we have not started advertising or set up distribution, this is only wholesale, 15 - 35 ton trucks.
90% of the plantations are amongst wheat fields, so easy access, no steep terrain.
Sent from my SM-J700H using Tapatalk
We get the trees for free, but we do give 5-10% of the split wood to the farmer as gesture. Plantations are 1/2 to 14ha. In total we have 4 million tons of trees we can potentially harvest. Our only cost, is cost to manufacture.
We have wholesale customers who we supply wet and dry wood to. Our existing order is 5000 ton per year at this stage, client is looking to expand if he can source more firewood. During the last 3 months we lost an additional 3000 tons in sales (new clients) because we did not have stock, could not supply, due to the fact that we are 1 tractor short, so we can only run processor when we are not winching trees.
The demand just for Cape Town is 500 ton of firewood per day. Population approximately 5 million.
We also supply bagged product to residential customers in 100km radius.
Potential market is mind blowing as there is huge firewood shortage. Monthly, 3000 tons are trucked in from as far as 1500km. At R1/kg firewood as fuelsource is 30% of the price of electricity or 40% compared to gas.
We started with no cash, so due to lower volumes, cash is strapped until we get second tractor.
Last Friday, our investor said he is pulling the plug? WTF? Mind blowing? After 6 months. Yes, he is crazy and suffer from severe depression due to his job.
This leaves us at ground zero, equipment wise as he is going to sell the equipment. We are left with a hell of a lot of free trees, and orders that we cant fill.
In RSA funding is non existent if you are white, everything is black empowerment. This leaves me with a dilemma; where to get funds to buy equipment again? If we do secure funds, I will not go for Tajfun, 2cord/hr machine, but rather upgrade to Rapido Loco 20 with larger capacity, or similar.
Exchange $1=13R or R15 to €1
We sell at R550-R800 per ton (excl delivery)
In Cape Town (90km from us) the same wood sell for R1400/ton excluding delivery.
Dry wood are very scarce if available at all.
Wood source is free.
Min wage R1500pp per month and we have 10 man crew (biggest expense) due to equipment shortage.
To me this makes very good economics?
We already have orders of approximately 13 000 tons, just for 2018, and we have not started advertising or set up distribution, this is only wholesale, 15 - 35 ton trucks.
90% of the plantations are amongst wheat fields, so easy access, no steep terrain.
Sent from my SM-J700H using Tapatalk